Trading on Oracle-based System

Trading perpetual futures allows you to participate in a decentralized, leverage-enabled market with a unique set of tools designed to optimize your trading experience. Unlike traditional futures contracts with an expiry date, perpetual futures are designed to track the underlying asset’s price indefinitely, with no expiry, while balancing long and short positions through a dynamic funding rate.

This section provides an in-depth look into how to trade on the Oracle-based Futures System, manage margin, and utilize various features like advanced order types and risk management strategies. You’ll also find detailed explanations on key concepts such as liquidation, liquidity management, and arbitrage opportunities in perpetual futures markets.

Key Areas of Trading on Oracle-based Futures System:

• Trading on Oracle-based Futures System: Learn how to trade on the Oracle-based Futures System, from basic execution to understanding how it leverages oracles for accurate pricing.

  • Order Types: Discover the different order types, including market, limit, stop, take-profit, and stop-loss orders available on Horizon Futures.

  • Profit & Loss: Understand how Realized and Unrealized Profit and Loss (PnL) are calculated and their importance in your trading strategy.

  • Oracles: Learn how oracles, including Chainlink and Pyth, provide the necessary price feeds to track underlying assets for futures contracts.

  • Fees & Rebates: Review the fee breakdown, including the variable percentage fees, Maker/Taker fees, Keeper fees, and how the Oracle-based system keeps costs low.

  • Liquidation: Understand the liquidation process, including how liquidation prices are calculated and the factors that influence them, such as liquidation premiums, Keeper fees, and buffers.

  • Liquidity: Learn about the two types of liquidity that power the Oracle-based Futures System: Global zAsset Liquidity and On/Off Ramp Liquidity.

    • Global zAsset Liquidity: Understand how the global zAsset market is maintained, with HZN stakers supporting the synthetic assets backing the system.

    • On/Off Ramp Liquidity: Discover how liquidity is managed for seamless access to the futures and spot markets on Horizon Protocol, enabling smooth asset acquisition and management.

  • Account Management (FAMS): Learn about the Futures Account Management System (FAMS) and how it automates multi-step operations for efficient margin management, limit/stop-loss order execution, and seamless trade execution.

  • Arbitrage in Perpetual Futures: Explore arbitrage strategies, including intra-platform and cross-platform arbitrage, to capitalize on funding rate differences.